Please read the businessweek article at httpwwwbusinessweekc

Please read the businessweek article at http://www.businessweek.com/articles/2012-08-02/amtraks-grand-plans-for-its-northeast-line Please discuss the following questions:

1. What are the reasons and justifications for Amtrak\'s modified operating strategy?

2. How can operations managers maintain a viable operating strategy for their enterprises?

3. What is the role of government in helping needy businesses? How should this role be funded?

4. What is the future of government subsidies to business?

Solution

1. The main reason is that demand is growing rapidly and as a result Amtrak is a looking for more funds from the government. The additional money will be used to renovate the traffic around Washington square. The funds will also be used to create bullet train route between Boston and Washington that travel in excess of 200 mph.

2. The mangers need to look to improve the efficiency and focus on cost cutting measures to make the company operate effectively. Their operating strategy needs to look at the customer value chain so that it can provide differentiation among competitors and proactive use of technology.

3. As per my view, government role should be much lower than it is now. We are a free market society based on capitalism therefore if a business cannot succeed based on the quality and value of their product and services, then it should not be in business. Funding should be done based on usage. If someone is using the services and products then he should pay for it through usage tax like sales tax if the program is government based.

4. It should decrease because the government continues to rack up excessive debt and cannot pay for things. The cuts in the fund need to be made in several areas over the time including the government subsidies to business. In this case, a lot may things on president office and senate. The current administration promotes hands on government with more spending. The government should allow free market to operate by not subsidizing business as much.